User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Monday May 17, 2010 - 20:37:41 GMT
Reuters -

Share This Story:
| | Email

FOREX NEWS - Euro rises from 4 yr-low vs dollar; sentiment still down

4:33pm EDT

* Euro slumps to four-year low against the dollar

* ECB's Nowotny says euro in "normal range"

* EU Chairman Juncker says worried about pace of euro fall

* Sterling/dollar falls to lowest since March 2009 (Updates prices, adds comment)

By Gertrude Chavez-Dreyfuss

NEW YORK, May 17 (Reuters) - The euro rallied from a four-year low against the dollar on Monday, helped by a turnaround in stocks late in the session which temporarily offset fears that euro zone austerity measures could trigger a downturn in the region.

As the euro began to rise, investors who had bet against the single currency were also forced to buy back euros in order to cut their losses in what is known as a "short-squeeze."

Given the euro zone's debt problems, the euro has become a proxy for risk appetite, rising and falling in tandem with U.S. stocks.

The euro's correlation with the S&P 500 <.SPX> was at a robust 87 percent on Monday, the highest since February, according to Reuters data.

"We're seeing a little bit of a short-squeeze on the euro. Mondays tend to be a reversal day lately plus the fact that stocks have recovered and that's provided an impetus to exit euro shorts," said Brian Dolan, chief currency strategist, at in Bedminster, New Jersey.

Dolan also believes the euro is likely to hit a short-term bottom between $1.2150-$1.2200 within the next few days and could rise back to the $1.26-$1.27 area.

"I think people are getting bored with euro weakness. You've got everybody and his brother talking about the euro That's a sure indication that the euro is due for a correction higher," he added.

In late New York trading, the euro <EUR=> changed hands 0.2 percent higher against the dollar at $1.2387. Earlier in the global session, the euro fell as low as $1.2234, according to electronic trading platform EBS <EUR=EBS>, the lowest in more than four years.

Against the yen, the euro traded up 0.1 percent at 114.54 yen after falling to 112.47 <EURJPY=EBS> in Asia trade. The dollar was last at 92.51 yen <JPY=>, flat from Friday's close.

The euro has fallen nearly 7 percent against the dollar this month, and is about percent 13.5 for the year, making it the worst-performing major currency so far in 2010.

Technical analysts said the next key support was at $1.2135, the 50 percent retracement of the rally from the all-time lows near 82 U.S. cents to record highs just above $1.60.

Overall, sentiment on the euro remained negative, analysts said, and many think this rise in the euro is short-lived.


A 750-billion euro ($1 trillion) bailout package from the European Union and the International Monetary Fund aimed at shoring up euro zone bond markets has done little to appease concerns Greece's debt crisis could spread to other similarly indebted countries such as Spain and Portugal.

"It's a package that raises more questions than answers and wouldn't necessarily alleviate the euro zone debt crisis," said John McCarthy, director of foreign exchange trading at ING Capital Markets in New York.

"We expect the euro to slip further as long as we remain in this lack of resolution phase in the euro zone. But it's not a straight line function and I'm sure we're going to see a bounce here and there."

European Central Bank policymaker Ewald Nowotny earlier said the fall in the currency was not a cause for concern, adding the exchange rate was in a "normal range" and there was no reason for hysteria about it. For details, see [ID:nLDE64G19T]

However, Eurogroup Chairman Jean-Claude Juncker said on Monday he was worried about the pace of the euro's fall than the exchange rate itself.

The ECB on Monday bought 16.5 billion euros worth of bonds in the first week of its government debt buying program to help resolve the euro zone's debt crisis. [ID:nLDE64G1O9].

Analysts said widening euro zone problems had prompted a money market dollar liquidity shortage.

"If the sharp deterioration in money markets persists into this week, look for central bank action to lower the cost of access to their dollar funding facilities," Citibank analysts said in a note.

Sterling, meanwhile, slid to its lowest since March 2009 at $1.4249 <GBP=D4> before rising back to $1.4474, still down 0.4 percent on the day.

The pound was hit by data showing the past year's rise in British house prices may be cooling. [ID:nLDE64C1G4]

© Thomson Reuters 2010. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world.

Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.




Forex Trading News

Forex Research

Daily Forex Market News
Forex news reports can be found on the forex research headlines page below. Here you will find real-time forex market news reports provided by respected contributors of currency trading information. Daily forex market news, weekly forex research and monthly forex news features can be found here.

Forex News
Real-time forex market news reports and features providing other currency trading information can be accessed by clicking on any of the headlines below. At the top of the forex blog page you will find the latest forex trading information. Scroll down the page if you are looking for less recent currency trading information. Scroll to the bottom of fx blog headlines and click on the link for past reports on forex. Currency world news reports from previous years can be found on the left sidebar under "FX Archives."

Actionable trading levels delivered to YOUR charts in real-time.

Register To Test Your Amazing Trader

GVI Trading. Potential Price Risk Scale
AA: Major, A: High, B: Medium

Mon 23 July 2018
A 14:00 US- Existing Homes Sales
Tue 24 July 2018
AFlash PMIs
Wed 25 July 2018
A 08:00 DE- IFO Survey
A 14:00 US- New Homes Sales
A 14:30 US- EIA Crude
Thu 26 July 2018
AA 11:45 EZ- European Central Bank Decision
A 12:30 US- Weekly Jobless
A 12:30 US- Durable Goods
Fri 27 July 2018
AA 12:30 US- GDP
A 14:00 US- Final University of Michigan

John M. Bland, MBA
co-founding Partner,

Global-View Affiliate Program

We are starting an affiliate program to market some of our products.

Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.

Put the word "affiliate" in the email subject line.

Contact us

Start trading with forex broker Markets Cube

Max McKegg's Daily Forex Trading Forecasts

Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.

Request a TRIAL of Max's Forex Service.


Retail Forex Brokerage Changing!

Are you looking for your first broker or do you need of a new one? There are more critical things to consider than you might have thought.

We were trading long before there were online brokers. Global-View has been directly involved with the industry since its infancy. We've seen everything and are up-to-data with recent regulatory changes.

Our Best Brokers listing section includes:Forex Broker Reviews, Forex Broker Directory, Forex Broker Comparisons and advice on How to Choose a Forex Broker

If would like guidance, advice, or have any concerns at all ASK US. We are here to help you.

SEE Our Best Brokers List

Currency Trading Tools

  • Live rates, currency news, fx charts. 

  • Research reports and currency forecasts.

  • Foreign Exchange database and history.

  • Weekly economic calendar.

Directory of  Forex trading tools

Terms of Use    Disclaimer    Privacy Policy    Contact    Site Map

Forex Forum
Forex Trading Forum
Forex Forum + forex rates
Forex Forum Archives
Forex Forum RSS
Free Registration

Trading Forums
Currency Forum Guide
Forum Directory
Open Forum
Futures Forum
Political Forum
Forex Brokers
Compare Forex Brokers
Forex Broker News
Forex Broker Hotline

Online Forex Trading
Forex Trading Tools
Currency Trading Tools
Forex Database
FX Chart Points
Risk/Carry Trade Chart Points
Economic Calendar
Quicklinks to Economic Data
Currency Futures Swaps
Fibonacci Calculator
Currency Futures Calculator

Forex Education
Forex Learning Center
FX Trading Basics Course
Forex Trading Course
Forex Trading Handbook

Forex Analysis
Forex Forecasts
Interest Rate Forecasts
Central Bank Forecasts

FX Charts and Quotes
Live FX Rates
Live Global Market Quotes
Live Forex Charts
US Dollar Index Chart
Global Chart Gallery
Daily Market Tracker
Forex News
Forex Blog
Forex News
Forex Blog Archives
Forex News RSS
Forex Services
Forex Products
GVI Forex
Free Trials
FX Bookstore
FX Jobs and Careers
Jobs USA
Jobs UK
Jobs Canada

Forex Forum

The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.

Forex News

The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.

Currency Trading

Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by

Forex Brokers

The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.

Forex Trading

Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.

FX Trading

Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.

Forex Blog also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.



By using this website, you are agreeing to our Privacy Policy and Terms of Use, and Cookie Policy

Copyright ©1996-2014 Global-View. All Rights Reserved.
Hosting and Development by Blue 105